Fuel is usually an airline’s largest variable cost, accounting for a third or more of operating expenses.

Calgary-based WestJet also announced it would introduce a new C$25 fee for checked bags on its international economy fares, starting in January 2016, as the airline challenges rival carrier Air Canada AC.TO with recently introduced flights to international destinations including Europe.

“We’ve made this decision that we will unbundle certain services,” WestJet President and Chief Executive Gregg Saretsky told a conference call with analysts.

“We’re busting up the model for long-haul flying,” he added.

Net earnings in the quarter rose 95 percent to C$101.8 million, or 82 Canadian cents per share, from a year earlier.

Analysts on average had expected earnings of 75 Canadian cents per share, according to Thomson Reuters I/B/E/S.